Finance Management is nothing new for People who are deeply rooted to INDIAN customs & Culture . If You go through INDIAN Customs , Every Marriage purchase some GOLD which is given to LADY known as STRI DHAN ( women Wealth) and this WEALTH is used in worst case or much hampered family financial health .
Similarly , Every Citizen must not keep all eggs in single BASKET ! Kuchh "DHAN" khane ko hota hai , kuchh chhupa kar "RAKHANE" ko hota hai aur kuchh "Duniya ko "DIKHANE" ko hota hai !
Those who are attached with Rural INDIA , They must move some part of thier earnings in RURAL INDIA also keeping in mind your AREA is not NAXALs effected .
Ranjan R Sinh , NOIDA http://bihartoday.blogspot.com
I dont understand this article.. Does this mean that we just purchase some gold and keep it in some bank locker or something and after a substantial amount of time, sell it at a better value, which may be comparable to MFs or such investments and more than anything else, lesser risky? But do we not have to consider the fact that second hand gold(Gold owned by individuals) have lesser value than the market price? We also have to consider the fact that even reputed Jewellers may cheat in the purity of Gold, the charges of keeping the Gold etc... Another significant factor affecting Gold prices is that other forms of showiness: Pearl and Diamonds are gaining market, so Gold has to suffer ultimately. Last thing is, Tertiary articles like Gold will have market only when the economy is good, if we have to go on a subsistence basis, the demand for tertiary articles will lower, so prices would come down
RE:Gold prices down
by Mohammed on Apr 03, 2007 11:39 AM Permalink
My frend me also confused with this article. What i understand is when you buy gold coin the price will increase and as you said if we buy jewellery the price what the jwellerer gives you is very low and when you buy its very high and he is deducting the making charges as well. So what i understand is investin in gold coin is okay and we will get 10- 12 % return on that after one year or so because the grammage is marked on the coin. So be carefull
1]if everybody in india purchase gold with whatever investment they have will the inflation come down?
2]you suggest to invest in gold so everbodys assests will be stable and can beat inflation over a period of time is it applicable to all commodities or things whose price is stable as the price of gold?
3]sudden purchase of gold will increase the demand for gold and so will the price go up, is it not that when price will be going up and foreign investors will sell gold and book profit?
4]how do japan keep lowestinflation in the world only 1% when tokyo the costliest city in the world is in japan?
5]what lead to the economy crisis in japan which is the second richest country in the world?
6]when there is earth-sky difference in india and japan economy how the number of billioners in india exceeds that in japan ?
7]what role government can play in reducing inflation? if it is not in their hands what control do they have over economy?
8]is their any external forces trying to destabilise economy and waiting for government to invest forex reserves so they can book profit and bring down the economy to stone age?
9]i am asking so many questions because i dont want it to fail like indian cricket team?
10]lastly todays news in toi terroists planning to target indias power plants,electric grid, share market etc
11]we have not yet come out of mumbai train bombing and bombing on samjhauta express and terrorists are moving freely
the is the indian habit of forgetting things and always unprepared to face crisis for e.g power cuts in maharashtra
tell your comments its time now we people have to raise voice
RE:even gold price fluctuates
by sunny gandhi on Apr 16, 2007 01:44 PM Permalink
excellent qs vinod..hope u get ur answers please onc u get forward it to me sunny29584@redffmail.com
RE:even gold price fluctuates
by naveen fernandes on Apr 02, 2007 02:34 PM Permalink
Gold is a safe investment - especially during times of uncertainty, like terror attacks.
AVOID COINS -use ETFs (like Benchmark). Coins, especially those bought from banks defeat the purpose of investing - PROFITS (you pay more to buy and lose a lot when you sell). In an Exchange Traded Fund you pay only brokerage and enjoy complete liquidity. Plus the tax treatment is better than in physical gold. (I am not interested professionally in ETFs)
RE:even gold price fluctuates
by vinod ssssss on Apr 02, 2007 02:42 PM Permalink
why dont our government purchase gold out of forex reserves 197 b$ to beat inflation.
how much gold resrves do india have
which is the country with highest gold resrves is the country economy stable and inflation under control
RE:even gold price fluctuates
by shrinivas sharma on Apr 02, 2007 02:23 PM Permalink
Looks like this article is sponsered by some bank.. HDFC or ICICI? in same rediff few months back, they had advised not go buy gold from Bank...
RE:even gold price fluctuates
by RS on Apr 05, 2008 09:21 PM Permalink
Vinod's questions beg no answer. All his questions are coming out of simple logic and recent facts, not out of economic statistics. There is a large media hype out there, aping the western practices. Gold has only limited value in times of inflation, with the biggest plus point is that its purchase cost price will never nosedive. There is unbridled speculation in the commodities including the metals. The current price level of gold is unmaintainable.
RE:even gold price fluctuates
by Murali Ramsamy on Apr 03, 2007 12:46 AM Permalink
Vinod good Qs there..I could not answer..Hoping and waiting for the one who will
Over the period of past 25 years, the rise in gold prices was @ 5.1% (compounded annualised growth) whereas the inflation was @ 6.8%. Those who relied only on gold investments have thus lost a good deal in terms of real value. So also, it is not a common man's tendency to sell gold to tide over bad times in the life, unless it becomes the last resort for him to raise money. These points have to be noted before investing in gold, though it can be one of the many items in the financial planning of a person. e.g. FDRs, Postal MIP, Bonds, Mutual Funds, KVP / NSC, equities. Each one of these need to be balanced properly so as to achieve the objectives of the investor. This is an issue of financial planning.
RE:Gold prices & inflation
by navinkumar nandakumar on Apr 02, 2007 01:51 PM Permalink
somehow the experts always refrain from quoting suburban real estate as the one true hedge against all time inflation, instead recommending mutual funds and gold. Investing in approved plots in far off suburbs always makes better sense than volatile stocks or the elusive return on gold
RE:Gold prices & inflation
by p subramanian on Apr 02, 2007 02:00 PM Permalink
I aggree with you, Gold is primarily for women is easy to give and tough to get back
How one can say grew of 10%. If you can check, during Diwali the GOLD BARD of 10 TOLAS i.e. 116 GMS was costing Rs.108500 , whereas today it's Rs.110000. So how it is 10%?????
RE:Gold Bar
by Ramesh on Apr 02, 2007 02:01 PM Permalink
yea, i agree with you. Last year i made a investment in gold and real estate of equal amount. Within one year my real estate amount grew by 50% but gold prices dropped. My investment in gold was dump, where is this 10% author is talking about?
